Nordic funding alert as Norske draws Eu400m revolver down

Fears about a looming liquidity shortfall in the Nordic region were fuelled this week after Norske Skog, the Norwegian paper group, drew down its entire Eu400m revolver to repay a syndicated loan that it could not refinance in the loan market.

13 Mar 2009

Bankers said that Norskes problems were exacerbated by its low rating (B2/BB-) and the weakness of its sector. But they added that the move highlighted problems faced by borrowers across the region as foreign banks cut their exposure and bond and commercial paper markets remain dangerously volatile."Norske tried
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